On 19 November 2012, Credit Market Car Loan Index stood still at 45.52%, which was recorded two weeks ago, against 44.98% as of 24 October 2012 (the effective rate on new car loans per annum, in UAH). The information is as of 19 November 2012.

Denis Rakovsky, Sales Director at KreditMarket: “The mean effective rate on car loans, which has slightly increased since the last calculation, stands still at 45.52% this time. It’s to be recalled that’s the highest point of Credit Market Car Loan Index reached since the beginning of calculation. The lowest value was recorded in July 2011 (34.44%).

For the last two weeks since the previous calculation, two banks from our CreditMarket Car Loan Index list (PUMB and Credit Agricole) have changed their terms on this crediting type. Both banks have revised the nominal interest rate. PUMB has slightly decreased it, and Credit Agricole has increased the rate in a minor way. However, it did not affect the mean effective rates on car loans.

The situation in the Ukrainian credit resource market is still tense, just as within recent three months. And there are no prerequisites for any changes for the better in the short term. Even though an active sale of 2012 car models has already started, and it had to intensify activity in the car crediting market, the banks failed to offer cheaper credits. At the same time, it is known that car importers and dealers are currently interested in sales promotion and making much effort to free their warehouses from the current year’s cars to start selling the next year car models.”

Information

CreditMarket Car Loan Index is calculated on the basis of credits granted at 70% of the cost of a new car for a 3-year term. Promotional offers and ones subsidized by sellers are excluded. The redemption scheme - annuity, in case of no proposals - a serial loan. Currency – UAH. Principal – up to UAH80,000 UAH (the cost of a car – UAH114,300).